Here's What Key Metrics Tell Us About Synopsys (SNPS) Q2 Earnings

Core Insights - Synopsys reported $1.45 billion in revenue for the quarter ended April 2024, a year-over-year increase of 4.3% [1] - The EPS for the same period was $3.00, compared to $2.54 a year ago [1] - The reported revenue was below the Zacks Consensus Estimate of $1.51 billion, resulting in a surprise of -3.83% [1] - The EPS also fell short of the consensus estimate of $3.03, with a surprise of -0.99% [1] Revenue Breakdown - Maintenance and service revenue was $276.61 million, exceeding the average estimate of $244.73 million, representing a year-over-year change of +14.7% [4] - Total products revenue was $1.18 billion, below the average estimate of $1.27 billion [4] - Upfront products revenue was $396.39 million, surpassing the estimated $323.63 million, reflecting a +14.7% change year-over-year [4] - Time-based products revenue was $781.71 million, below the average estimate of $929.87 million, showing a year-over-year decline of -3.3% [4] - Design IP revenue was $399.80 million, compared to the average estimate of $419.91 million [4] - Design Automation revenue was $1.05 billion, slightly above the average estimate of $1.04 billion [4] Stock Performance - Synopsys shares returned +8.4% over the past month, outperforming the Zacks S&P 500 composite's +7.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]